The recruitment firm Prime People has lurched into the red, according to latest full year results.

After making a slim pre-tax gain of £270,000 in 2002, the firm made a loss before tax of £530,000 in the year ended December 2003. Sales from continuing operations dropped 22% from £3.93m to £3.05m.

The London Stock Exchange listed firm has said it will move to the slightly less demanding Alternative Investment Market.

Chairman Richard Lee said: "Given the continued uncertainty of the economic and political climate it remains difficult to predict how the group will perform in 2004."